Trump Says No Hormuz Strait Tolls During 60-Day Iran Ceasefire 
Dollar Surges After Fed Holds Rates Steady, Signals Potential Tightening Ahead 
Italy’s Economy Outpaces Eurozone Peers as Investment Spending Fuels Growth 
China’s AI Manufacturing Boom Masks Weak Consumer Economy, Citi Says 
Australia Eases Capital Gains Tax Reforms to Support Small Businesses and Startups 
Oil Prices Slide as U.S.-Iran Deal and Hormuz Reopening Ease Supply Concerns 
Yen Near 40-Year Lows Despite BOJ Rate Hike, Markets Brace for Possible Intervention 
US Stock Futures Jump on Reports of Preliminary US-Iran Peace Deal Despite Fed’s Hawkish Outlook 
Asian Stocks Surge as Oil Prices Fall and Strong US Dollar Weighs on Markets 
Russia Stocks End Flat as MOEX Index Hits New 52-Week Low; Gold Falls and Oil Mixed 
US Stock Futures Slip After Wall Street Rally Fueled by US-Iran Deal and Chipmaker Surge 
Trump and Iran Sign Framework Peace Deal in France Amid Ongoing Middle East Tensions 
Asian Stocks Rally as Japan and South Korea Reach Record Highs on US-Iran Peace Deal 
Dollar Hits One-Month High as Hawkish Fed Outlook Boosts Greenback 
Gold Prices Rebound on U.S.-Iran Peace Deal Optimism Despite Fed Rate Hike Signals 
German Industry Employment Falls to Lowest Level in a Decade 
Most Asian currencies traded within a tight range on Friday as the U.S. dollar strengthened ahead of the closely watched U.S. nonfarm payrolls report, a key data point expected to shape expectations around U.S. interest rates. Currency markets across Asia remained cautious, reflecting investor hesitation before the release of employment data that could influence the Federal Reserve’s policy outlook.
The Japanese yen underperformed regional peers despite data showing stronger-than-expected household spending in November. The USD/JPY pair rose around 0.3%, moving back above the 157 level. While higher household spending could support inflation trends in Japan, earlier wage data disappointed markets, limiting optimism around the Japanese economy. Ongoing diplomatic tensions between Japan and China, including new economic measures from Beijing, further weighed on the yen.
The Chinese yuan remained largely flat, with the USD/CNY pair slipping nearly 0.1% and holding near its strongest level in about two and a half years. December inflation data showed China’s consumer price index rising to its highest level in nearly three years, supported by improved domestic demand and higher food prices. Producer price index data also showed deflation easing slightly. However, analysts cautioned that much of the CPI increase was seasonal and warned that structural deflationary pressures linked to overcapacity remain a longer-term challenge. Beijing is widely expected to roll out additional stimulus measures in 2025 to support growth following a prolonged post-pandemic slowdown.
The dollar index steadied after modest gains earlier in the week, as traders positioned cautiously ahead of the payrolls report, which is expected to show moderate job growth in December. Any signs of labor market resilience could reduce expectations for near-term interest rate cuts by the Federal Reserve.
Elsewhere in Asia, the South Korean won weakened, with USD/KRW rising 0.2% and marking one of the region’s weakest weekly performances. The Taiwan dollar and Singapore dollar also edged lower, while the Australian dollar dipped slightly. The Indian rupee hovered just below the 90-per-dollar mark, reflecting broader regional caution.
Overall, Asian foreign exchange markets remained subdued, balancing local economic data, geopolitical risks, and the looming impact of U.S. labor market signals on global currency trends.
